Strategy Climbs 6% Following MSCI's Landmark Decision to Maintain DATs in Global Indexes

MicroStrategy (MSTR) extended gains by 6% in extended trading hours this week after MSCI announced it would keep digital asset treasury companies (DATs) within its major equity indexes. The decision, widely anticipated by market participants, reflects a significant shift in how major index providers evaluate companies whose core operations involve holding digital assets.

MSCI’s determination to maintain current index treatment for companies with digital asset holdings representing 50% or more of their total assets marked a watershed moment for the emerging DAT sector. Rather than implementing exclusionary measures, the index provider acknowledged the complexity of the space. “Distinguishing between traditional investment companies and entities that hold non-operating assets like digital assets as part of their core strategy—rather than for passive investment purposes—requires deeper research and ongoing dialogue with market participants,” an MSCI representative explained.

Why This Ruling Transforms the DAT Landscape

The implications of MSCI’s stance cannot be overstated. Had the index provider moved to exclude DATs, the sector would have faced a severe headwind: the potential loss of billions in passive capital flows. Index funds, which track MSCI benchmarks globally, would have been forced to divest from companies like Strategy, creating significant selling pressure and market disruption.

With this uncertainty lifted, market sentiment has visibly improved. Treasury companies beyond Strategy—including Bitmine Immersion (BMNR), Sharplink (SBET), and Twenty One Capital (XXI)—all registered modest gains in after-hours trading following the announcement. The relief reflected in price action suggests investors had been pricing in a worst-case scenario.

The Mechanics of Passive Capital and Market Momentum

This decision underscores a crucial dynamic in modern markets: the influence of passive capital flows on individual securities. When major index providers alter inclusion criteria, they effectively redirect trillions of dollars in tracking capital. The MSCI ruling confirms that DATs will continue benefiting from this passive inflow, providing a structural tailwind for the sector.

The broader steegen framework for analyzing digital asset companies suggests that regulatory clarity and index inclusion serve as essential validation mechanisms. As passive capital flows reward companies with better index placement, the MSCI decision functions as a powerful endorsement of the DAT business model.

Beyond Strategy: The Growing NFT and Web3 Narrative

While Strategy dominated headlines, other narratives gained traction. Pudgy Penguins emerged as one of the strongest NFT-native brands this cycle, executing a sophisticated strategy that transcends the “speculative digital luxury goods” label. The platform has architected a multi-vertical consumer IP approach: acquiring mainstream audiences through toys and retail partnerships, then onboarding those users into Web3 via games, the PENGU token, and NFT integrations.

The numbers validate execution. Phygital product sales exceeded $13 million with over 1 million units sold, while Pudgy Party—the gaming component—surpassed 500,000 downloads within two weeks. Token distribution has reached 6 million-plus wallets through airdrop mechanisms. Though market valuations price Pudgy at a premium relative to traditional IP comparables, sustained success hinges on retail expansion, gaming adoption velocity, and deepening token utility.

Bitcoin’s Muted Response and the Dollar Question

Bitcoin added approximately 1% on the MSCI news, reaching around $87.94K on the latest data (down 1.61% over 24 hours)—a modest response suggesting multiple cross-currents at play. Notably, bitcoin has underperformed during the recent dollar weakness, a counterintuitive dynamic given its historical role as a dollar hedge.

JPMorgan strategists offer clarification on this puzzle: the current dollar decline stems from short-term positioning and sentiment shifts rather than fundamental changes in growth or monetary policy expectations. They forecast the dollar will stabilize as U.S. economic data strengthens, meaning the market is treating the current currency weakness as a temporary phenomenon rather than a structural macro shift.

This perception fundamentally alters market dynamics. Because investors don’t view dollar decline as a lasting trend, bitcoin trades more like a liquidity-sensitive risk asset than a reliable hedge. Consequently, gold and emerging market equities have captured the bulk of dollar diversification flows, leaving bitcoin as a secondary beneficiary in this particular environment.

Conclusion: A Validation for Digital Asset Strategy

The MSCI decision represents validation for the DAT thesis at a critical juncture. By declining to exclude these companies, the index provider has effectively endorsed the notion that digital asset holdings constitute legitimate core operations for institutional-grade corporations. Strategy’s 6% surge reflects not just short-term relief, but confidence that the structural case for DATs remains intact—at least for now.